In order to offset Russian victories in the cold war, the United States must greatly increase its production and its imports during the next ten years, Sumner H. Slichter, Lamont University Professor, claims in the current June issue of the Atlantic Monthly.
Slichter, a noted economist, predicted that the next decade would be one of the most crucial periods in the economic and political life of our country. He felt that by 1960 outlays for national defense might well be doubled.
Urging the lowering of farm price support to suit long-range conditions of supply and demand and the adjustment of our foreign trade balance to the needs of this country and the rest of the world, Slichter said that "increases in Imports of raw materials--oil, iron ore, copper, lumber--would be in the national interest."
He also urged that certain luxury goods be imported. Though this would meet with political opposition, he felt that the success other countries had in making sales here would inevitably increase these countries demands for goods which the U.S. can make better and cheaper than other nations.
Slichter stated that "the prospects are good, though not perhaps too bright, that by 1960 private enterprise will have demonstrated that it can increase the number of jobs at a satisfactory rate." Optimistically, he asserted his belief "that the economy will avoid severe recessions from now on."
During the next ten years, Slichter continued, "we must retard the rapid rise in government expenditures, the rapid spread of government intervention in business, and the drop in influence of businessmen in our communities."
The economist suggested several ways in which government spending could be reduced. Foremost of these was the cutting of farm price supports and outlays for trade school education for veterans. Slichter also felt the government could reduce purchases of real estate mortgages. It would help the situation, he added, to finance through-highways by tolls instead of taxes.
"A slow rise in government expenditures is inevitable," he claimed, but this rate of increase should not exceed the rate of increase in national production.
As long as the Russians are winning the cold war, he continued, it would be purposeless for them to resort to a shooting war. Despite the fact that changing the tide of the cold war might not make the task any easier for our diplomats, he concluded, we obviously cannot continue to lose it.
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